FAQs on Non Neat Front End Registration Process
Background:
NSE offers to its trading members, a facility, by which members can use their own trading front-end software in order to trade on the NSE trading system. This facility is referred to as ‘Non NEAT Front End’ (NNF facility) and is available to all members of the Exchange.
‘Software’ shall mean electronic systems or applications used by trading members for connecting to the Exchange and for the purposes of trading and real-time risk management, including software used for Computer to Computer Link (CTCL), Internet Based Trading (IBT), Securities Trading through Wireless Technologies (STWT), Direct Market Access (DMA), Smart Order Routing (SOR) and Algorithmic Trading (AT).
Members have the option to use their own software running on any suitable hardware/software platform of their choice. This software, which is a replacement of the NEAT front-end software, is used by members to trade on the NSE trading system. The dealers of the member may trade using the software, through the member’s own private network, subject to approvals from Department of Telecommunication etc. as may be required in this regard.
Internet based trading takes place through order routing systems, which will route client orders, to exchange trading systems, for execution of trades on the existing stock exchanges.
Securities Trading using Wireless technology includes devices such as mobile phone, laptop with data card, etc, that use Internet Protocol (IP).
No. Only SEBI registered brokers who provide IBT are eligible to provide STWT. All relevant requirements applicable to IBT are also applicable to STWT.
Direct Market Access (DMA) is a facility which allows brokers to offer clients direct access to the exchange trading system through the broker’s infrastructure without manual intervention by the broker.
Smart Order Routing allows the brokers trading engines to systematically choose the execution destination based on factors viz. price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.
Any order that is generated using automated execution logic is known as algorithmic trading.
Presently, there are 3 options available to members:
1. NNF software may be developed by member in-house teams/non-empanelled vendors.
2. NNF software can be procured through Exchange Empanelled Vendors.
3. NNF software can be availed through the services of an Application Service Providers (ASPs) empanelled with the Exchange to offer such services.
a) Register with the Exchange as an In-house member.
b) Apply for access to the Exchange Test market environment
Members who opt to use their own trading front-end software (i.e. software developed by their in-house teams) in order to trade on the NSE trading system are known as ‘In-House’ Members.
Member can submit online application for registration of In-House facility under undertaking submission in ENIT-NEW-TRADE on Member portal at path: TRADE > NNFREGISTRATION > UNDERTAKING SUBMISSION. Kindly refer NSE circular Ref. No. NSE/MSD/42427 dated October 18, 2019.
Yes. The charges are Rs.1,50,000 (one time charge) + Rs.50,000 (recurring annual charge) + applicable taxes.
Payment for the same is collected from the Member’s Exchange Dues account.
Members have to refer to Exchange provided documents that describe the protocol to be used for Non-NEAT Front-end (NNF) applications to communicate with the Exchange's Trading System, known as Application Programming Interface (API). These are available on the Exchange website at: https://www.nseindia.com/trade/platform-services-neat-trading-system-protocols
Submission of Common NNF Undertaking: Members seeking registration of their NNF software for the first time, need to prior submit an Undertaking Submission request. Members can place their request through ENIT-NEW-TRADE on Member portal and access the module at path:
TRADE > NNFREGISTRATION > UNDERTAKING SUBMISSION.
Documents to be submitted:
Common NNF Undertaking on Stamp Paper (Physical copy to be submitted to exchange) Board Resolution
Common Undertaking – Annexure I, needs to be submitted only once. If Common Undertaking – Annexure I is submitted while registration with Empaneled Vendor then the same is not required to be submitted at the time of In-House/ASP Software registration and vice versa.
Post submission of the Undertaking request, members can proceed with submitting of applications through the online portal ENIT. Members are advised to refer Annexure 1 for the list of documents to be submitted for both new as well as modified software/systems before applying on ENIT.
For formats of the applications, members can refer to circular reference number NSE/MSD/47592 dated March 10th, 2021
For registration of SOR facility, kindly refer circular NSE/CMTR/17073 for additional documents to be provided along with SOR Product Write-up. (Note: Presently, SOR application is received in physical format)
The member can procure NNF software from the vendors empanelled with the exchange. The list of Exchange empanelled vendors is available on the Exchange website at https://www.nseindia.com/trade/platform-services-non-neat-empanelled-vendors-of-the-exchange
The list of Application Service Provider’s empanelled with the Exchange is available on the Exchange website at https://nseindia.com/trade/platform-services-non-neat-empanelled-vendors-of-the-exchange. Members desiring to avail ASP services are required to submit their applications to the respective ASP. Members can refer NSE circular ref no NSE/MSD/46443 dated November 24th, 2020 regarding the list of documents to be submitted to ASPs.
Yes, you can surrender your registered NNF products. However before submitting your surrender request, members are advised to disable all user IDs activated under the respective products. Members can refer NSE circular ref no NSE/MSD/43376 dated January 30th, 2020 regarding surrender request of NNF software.
NNF products can be surrendered through ENIT-NEW-TRADE on Member portal and access the module at path:
Trade > NNF surrender > Surrender Request
You can reach the Member Service Department at 1800 266 0050 or email us at msm@nse.co.in
Understanding Diagram
Note:
- Common Undertaking – Annexure I, needs to be submitted only once. If Common Undertaking – Annexure I is submitted while registration with Empanelled Vendor then the same is not required to be submitted at the time of In-House/ASP Software registration and vice versa.
- For NNF registration via ASP kindly refer circular no. NSE/MSD/46443 dated November 24, 2020.
Download FAQs on Non NEAT Front End Registration Process (.pdf)
Disclaimer:
“This document/FAQ has been drafted in order to ease Member’s/reader’s understanding of the subject matter. The information and/ or content (collectively ‘Information’) provided herein is general information only and NSE has issued detailed circulars to that effect from time to time. While reasonable care has been exercised to ensure that the information is adequate and reliable, no representation is made by NSE as to its accuracy or completeness and NSE, its affiliates and subsidiaries accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. The readers are expected to undertake their own diligence and are advised not to solely rely on this document. Any such reliance shall be at the reader’s own risk. Nothing stated herein shall bind NSE, in any manner whatsoever.”
Updated on: 16/06/2023
